TM - Is this Discriminatory?

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jyeh74

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I am in contract with a home at TM.  They originally approved me and now they are saying the loan may not go through.  Rep from TMHF is saying they will put it on Sales VP to determine, what the interest is on my lot.  i.e. if there is interest, they may just push us to future phases when we can qualify or they may make an exception.

Isn't that discriminatory?  I have not signed waiver to release my lot.  They were the ones who pre approved me and now they cannot get it done.  No simple yes or no answer.  He deferred it to the sales reps' VP to make the decision based on the interest (back log) on my lot.  Please advise.
 
irvineboy said:
I am in contract with a home at TM.  They originally approved me and now they are saying the loan may not go through.  Rep from TMHF is saying they will put it on Sales VP to determine, what the interest is on my lot.  i.e. if there is interest, they may just push us to future phases when we can qualify or they may make an exception.

Isn't that discriminatory?  I have not signed waiver to release my lot.  They were the ones who pre approved me and now they cannot get it done.  No simple yes or no answer.  He deferred it to the sales reps' VP to make the decision based on the interest (back log) on my lot.  Please advise.
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How is it discriminatory?  The purchase of your home is contingent upon you paying the agreed-upon purchase price.  If your loan cannot go through, you can't pay that price.  Additionally, pre-approval doesn't mean that you automatically get the loan.
 
Correction - they are trying to approve me on a different loan.  However, the details of the loan depends on the interest on my lot.  Thats what I think is discriminatory.

If there is no interest, I may get approved.
If there is interest, then I may not get approved.
 
irvineboy said:
Correction - they are trying to approve me on a different loan.  However, the details of the loan depends on the interest on my lot.  Thats what I think is discriminatory.

If there is no interest, I may get approved.
If there is interest, then I may not get approved.
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I am not understanding your situation at all.  Loans are generally not done by the builders, they usually have a third party loan company handling that.  You can also go outside and get your own loans.

How are the details of your loan based upon interest?  It makes no difference to them if they sell the house to you or another buyer.  In fact, taking you out of the equation actually reduces their interest because there is one fewer buyer. 
 
Agreed, just use an outside lender and get the loan through another bank.  The builder shouldn't need to make these kind of comments to your selected lender during your approval process.

Once you have been approved, you can fulfill the terms of the contract. 
 
WTTCMN said:
aquabliss said:
Agreed, just use an outside lender and get the loan through another bank.  The builder shouldn't need to make these kind of comments to your selected lender during your approval process.

Once you have been approved, you can fulfill the terms of the contract. 
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Unless he passed the cut off point to select an outside lender - if such a rule exists for TM.
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I guess it's possible but I don't understand why he feel discriminated...is the lender not providing an explanation about why the loan is becoming an issue? 

We had a terrible experience with our lender not properly explaining the loan and forced us to come up with materially more down payment than we planned or lose the house/deposit.  We were able to do it but at a great cost to us.  I feel like some mortgage companies are more interested in getting you in the door but not so good about working with your afterwards.
 
When seeking advice it's always helpful to provide an accurate fact pattern and relevant details. The way you presented your situation doesn't make any sense.
 
What if a cash buyer comes and is interested in my lot?  Does that mean I get pushed to a later phase?

The rep just said, "if there is interest in your lot then we may push you to a later phase, but if there isn't then we may make an exception" Not an exact quote but that's what was said. I took that as "we may sell your lot to someone else".

I am waiting for the in house lender to give me the green light to use an outside lender.  To use an outside lender, I will have to sign a addendum which releases my rights to the $5,000 credit and can be charged $1000/day if the bank does not fund on time. 

I was given advice to wait until the in house lender say they've exhausted their resources and can not fund.  That forces me to use an outside lender, I can then receive the credit + late fund fee may be waived.  I want to play it safe.

 
irvineboy said:
What if a cash buyer comes and is interested in my lot?  Does that mean I get pushed to a later phase?

The rep just said, "if there is interest in your lot then we may push you to a later phase, but if there isn't then we may make an exception" Not an exact quote but that's what was said. I took that as "we may sell your lot to someone else".

I am waiting for the in house lender to give me the green light to use an outside lender.  To use an outside lender, I will have to sign a addendum which releases my rights to the $5,000 credit and can be charged $1000/day if the bank does not fund on time. 

I was given advice to wait until the in house lender say they've exhausted their resources and can not fund.  That forces me to use an outside lender, I can then receive the credit + late fund fee may be waived.  I want to play it safe.
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I see it differently than you.  The rep seems to be saying that if there is another biyer ready to go, they will give it to that buyer because you are having issues with your loan.  If there is no ready biyer, they will try to work with you because you're the only potential buyer.

As for the outsider lendrr thing...I will leave that to others.  I will say that I think you can get the same or better deal with an outside lender.  Care to tell us what issues you are facing with the loan?
 
irvineboy said:
I am in contract with a home at TM.  They originally approved me and now they are saying the loan may not go through.  Rep from TMHF is saying they will put it on Sales VP to determine, what the interest is on my lot.  i.e. if there is interest, they may just push us to future phases when we can qualify or they may make an exception.

Isn't that discriminatory?  I have not signed waiver to release my lot.  They were the ones who pre approved me and now they cannot get it done.  No simple yes or no answer.  He deferred it to the sales reps' VP to make the decision based on the interest (back log) on my lot.  Please advise.
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no.. you need to fully qualify for a loan.
 
Looks like they are having issues getting your loan approved in time for close of escrow.. that's why they might defer you.
 
I also remember someone complaining about TMHF with the loan process. I say just go with an outside lender ASAP. Usually they will also give you a $5000 credit toward closing if you say you're thinking of going with them vs TMHF but the only thing keeping you at TM is the credit.  Always have a back up to avoid situations like this.

With our TM purchase TMHF is in the process of getting the loan we want but while they are in the process of doing that I already went with an outside lender and got underwriter approval. So if TMHF doesn't come through (which I don't think they will) I already have outside lending ready to go with underwriter approval. And my outside lender is already matching the $5000 closing cost credit.

 
I am also in the process of applying for a loan through TMHF.  I have worked with several loan agents (with other companies) before and find TMHF to be the most difficult to work with by far.  Scrutinizing is an understatement.  I am at the point where I am planning to apply with another lender as I am just fed up with TMHF.  I've talked to two other prospective lenders (one I've used before) and neither seem to need some of the items that TMHF is requiring.  TMHF likes to blame it on Fannie/Freddie requirements, but I had items run through an underwriter with a major bank and was told there is no such Fannie/Freddie requirement.
 
irvine buyer said:
I am also in the process of applying for a loan through TMHF.  I have worked with several loan agents (with other companies) before and find TMHF to be the most difficult to work with by far.  Scrutinizing is an understatement.  I am at the point where I am planning to apply with another lender as I am just fed up with TMHF.  I've talked to two other prospective lenders (one I've used before) and neither seem to need some of the items that TMHF is requiring.  TMHF likes to blame it on Fannie/Freddie requirements, but I had items run through an underwriter with a major bank and was told there is no such Fannie/Freddie requirement.
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can you list out some of the requirements that you find odd?
 
I don't want to go into issues specific to my application in case the TMHF rep I am using is trolling this forum.  However, one item that should be safe to mention is that TMHF wants me to obtain a written letter from a lender that I got pre-approved with months ago stating that the mortgage lender has closed my file with no further action.  When I approached the lender for such a letter, the rep at that lender said that all I needed to do was write a letter to TMHF stating that we did not pursue that loan and that no loan was ever originated.  When I went back to TMHF with this, I was told that TMHF needed the letter from the lender, not me, as it was a Fannie Mae requirement.  I went back to this other lender and was told that there is no such Fannie requirement.  I spoke to a mortgage broker, who asked an underwriter at a big bank, and was told that there was no such Fannie requirement; and that a letter from me addressing this previous application should suffice.
 
I have to say that if TMHF goes through Fannie, you are in a for a tough road.  Fannie Mae is very strict on guidelines.  They play hardball on modifications as well.

It maybe better if you go with another lender.  A lot of banks are willing to fund and keep large loans now. 
 
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